Investment Term Of The Day : Refunded Bond
Sign up for free
Listen to this episode and many more. Enjoy the best podcasts on Spreaker!
Download and listen anywhere
Download your favorite episodes and enjoy them, wherever you are! Sign up or log in now to access offline listening.
Description
Refunded bonds, which are a subset of the municipal and corporate bond classes, are bonds that have their principal cash amount already held aside by the original issuer of the...
show moreA refunded bond should not be confused with a pre-refunding bond, which is a debt security that is issued in order to fund a callable bond. With a pre-refunding bond, the issuer decides to exercise its right to buy its bonds back before the scheduled maturity date.
Refunded bonds are low-risk investments because the principal amount is already accounted for. The funds required to pay off refunded bonds are held in escrow until the maturity date, usually by purchasing Treasury or agency paper. Refunded bonds can also be referred to as pre-refunded bonds or prior issues.
Information
Author | Africa Business Radio |
Organization | Africa Business Radio |
Website | - |
Tags |
Copyright 2024 - Spreaker Inc. an iHeartMedia Company